[Click eStock] "POSCO International, Value of Automotive Parts Subsidiary POSCO SPS Highlighted"

[Asia Economy Reporter Hyunseok Yoo] Shinhan Financial Investment analyzed on the 8th that the corporate value of POSCO SPS, an electric vehicle parts subsidiary of POSCO International, will be highlighted. No investment opinion or target price was presented.

Shinhan Financial Investment expects the corporate value of POSCO SPS, a 100% subsidiary newly established through a physical division in April last year, to be emphasized. The company is the No. 1 manufacturer in Korea of drive motor cores, a key component of eco-friendly vehicles. The drive motor is one of the most important powertrain core components in eco-friendly vehicles, along with the battery.

Researcher Changmin Yoon of Shinhan Financial Investment said, "There are about seven drive motor core manufacturers globally, and currently, there is no absolute leader." He added, "As the eco-friendly vehicle market is rapidly growing, demand far exceeds supply, and although POSCO SPS operated at full capacity last year, it could not meet market demand."

He stated, "POSCO SPS plans to expand its capacity to 2 million units domestically by 2022," and "In the mid-term, it plans to invest 300 billion KRW domestically and abroad by establishing joint ventures in Europe and North America and expanding overseas production bases."

He also expects the customer base to expand overseas in the future. He evaluated, "The main customer is Hyundai Motor Group, and overseas customers include some automakers and top-tier automotive parts companies." He added, "Although the current proportion of overseas customers is low, it can rapidly increase through synergy with the group's overseas sales network."

He expects POSCO International's performance to improve this year as well. He emphasized, "All business divisions of the core business will turn around from the bottom last year," and "The value of the electric vehicle parts subsidiary POSCO SPS is a significantly undervalued area that has not been reflected."

This content was produced with the assistance of AI translation services.